Exercise 3-16 (Algo) Calculating ratios [LO3-8]
The 2021 balance sheet for Hallbrook Industries, Inc., is shown below.


HALLBROOK INDUSTRIES, INC.
Balance Sheet
December 31, 2021
($ in thousands)
Assets
Cash $ 370
Short-term investments 320
Accounts receivable 370
Inventory 340
Property, plant, and equipment (net) 2,700
Total assets $ 4,100
Liabilities and Shareholders’ Equity
Current liabilities $ 570
Long-term liabilities 520
Paid-in capital 1,600
Retained earnings 1,410
Total liabilities and shareholders’ equity $ 4,100

The company’s 2021 income statement reported the following amounts ($ in thousands):



Net sales $ 6,300
Interest expense 50
Income tax expense 160
Net income 330

Required:
1. Calculate the current ratio. (Round your answer to 2 decimal places.)
2. Calculate the acid-test ratio. (Round your answer to 3 decimal places.)
3. Calculate the debt to equity ratio. (Round your answer to 2 decimal places.)
4. Calculate the times interest earned ratio. (Round your answer to 1 decimal place.)